Chile’s Ministry of Energy publishes Green Hydrogen Action Plan 2023–2030
On April 25, 2024, Chile’s Ministry of Energy published its Green Hydrogen Action Plan 2023–2030 following a successful consultation process.
The plan aims to establish a roadmap of milestones and actions that will be executed between 2023 and 2030 to develop a sustainable green hydrogen industry, including its derivatives and the entire value chain. Its objectives closely align with those of Chile’s National Energy Policy (2022) and the National Green Hydrogen Strategy (2020).
The plan’s related activities will be carried out in coordination with the Chilean government, relevant agencies, and regional and local initiatives.
Timeframe and milestones
a. The first stage, lasting from 2023 to 2026, will focus on implementation, with an aim to achieve adequate investment signals, develop standards and regulations, and strengthen relationships with potential buyers
b. The second stage, from 2026 to 2030, will focus on initiating productive development and decarbonization, with an emphasis on regional and local development
Action points
The Green Hydrogen Action Plan proposes 18 lines of action that are further divided into 81 specific sub-actions. These actions will be coordinated and developed by multiple ministries and agencies, including the International Development Bank, GIZ, InvestChile, and ProChile, among others. Each action has a definite objective, deadline, milestone, and institution responsible for its implementation.
The plan focuses on ten milestones focused on industry growth, all to be completed within the first stage. These milestones include:
- The formal opening of the Financial Facility, called “Facility H2V”
- The closing of the first fiscal land allocation process, called the “Window to the Future,” and kicking off a second allocation process
- Strengthening Chile’s R&D Law by tripling its upper tax credit threshold, and
- Publication of Public Environmental Baselines to facilitate environmental assessment processes and standardize available information, among others.
Other highlighted actions include:
- Action 12: Strengthening Production Development Corporation (CORFO) development instruments with a focus on H2V
- Action 13: Boosting domestic demand for H2V in relevant sectors through an Emissions Trading System (ETS)
- Action 23: Adopting international reference standards not presently covered by Chilean regulations for the environmental assessment of projects
- Action 29: Promoting specific and enabling regulations for seawater desalination
- Action 30: Strengthening public services in charge of delivering permits for the development of Chile’s green hydrogen industry, and establishing an implementation route with a regional focus
- Action 35: Updating regulations related to territorial compatibility with Chile’s green hydrogen industry
- Action 49: Implementing green hydrogen, ammonia, and other derivatives projects within the electricity markets to provide services related to energy and capacity, as well as complementary services
For more information, please contact the authors.
